The FBI said Friday that it is investigating claims of bank fraud and embezzlement at Universal Savings Bank, the Orange-based institution that was the taken over by the state last month but returned to the control of its Australian owner Wednesday by court order. FBI spokesman Jim Neilson would not disclose what triggered the investigation or who the targets of the probe are but said that the investigation began about a month ago.

The FBI said Friday that it is investigating claims of bank fraud and embezzlement at Universal Savings Bank, the Orange-based institution that was the taken over by the state last month but returned to the control of its Australian owner Wednesday by court order. FBI spokesman Jim Neilson would not disclose what triggered the investigation or who the targets of the probe are but said that the investigation began about a month ago.

Twenty-four days after being ousted as chairman of Universal Savings Bank, a victorious Christopher Blaxland reclaimed his office Thursday after an unprecedented court decision overturned the state's June 16 seizure of the financially sound S&L. "I felt a great sense of personal satisfaction, I must say," the Australian-born Blaxland said in an interview a few hours after resuming his duties at Universal's headquarters office in Orange.

Twenty-four days after being ousted as chairman of Universal Savings Bank, a victorious Christopher Blaxland reclaimed his office Thursday after an unprecedented court decision overturned the state's June 16 seizure of the financially sound S&L. "I felt a great sense of personal satisfaction, I must say," the Australian-born Blaxland said in an interview a few hours after resuming his duties at Universal's headquarters office in Orange.

Universal Savings Bank, the Orange-based savings and loan that state regulators seized briefly during the summer, will close its Santa Ana office Feb. 4, leaving the S&L with nine branches in Orange and Los Angeles counties. Universal's president, George C. Hale, could not be reached during the last two days to explain why the institution was closing the branch at 2140 N. Main St. One reason could be efficiency. The branch's deposits accounted for about 2.

The Australian owners of Universal Savings Bank on Wednesday accused the state savings and loan commissioner of relying on "unsubstantiated and untrue allegations" made by a disgruntled director to justify the unprecedented takeover of the healthy, Orange-based S&L. Christopher Blaxland, the suspended chairman of Universal and a director of Universal's parent company, Unity Group Ltd.

The Australian owners of Universal Savings Bank on Wednesday accused the state savings and loan commissioner of relying on "unsubstantiated and untrue allegations" made by a disgruntled director to justify the unprecedented takeover of the healthy, Orange-based S&L. Christopher Blaxland, the suspended chairman of Universal and a director of Universal's parent company, Unity Group Ltd.

For the second time this week, a federal judge has refused to grant a temporary restraining order in the battle between federal regulators and Universal Savings Bank in Orange. In court documents filed Wednesday, attorneys for the Federal Home Loan Bank Board insisted that Universal's chairman and others were "intentionally thumbing their noses" at the bank board because Universal has stripped two dissident directors of power while awaiting bank board approval to fire them. U.S.

A tentative agreement calling for Guardian Savings & Loan in Huntington Beach to acquire foreign-owned Universal Savings Bank in Orange has collapsed, barely a month after Guardian announced the deal. Executives for both S&Ls said Friday that snags in the final agreement caused the collapse, but they would not specify what those snags were. Termination of the deal sets back Guardian's previously announced timetable for becoming a $1-billion institution by February. The S&L had $538.

Universal Savings Bank reportedly has nearly settled its regulatory woes by paying about $390,000 in severance benefits to two directors who precipitated a short-lived state takeover of the Orange-based institution. The S&L also agreed to hire a new president approved by federal regulators. Universal, which is owned by an Australian company, Unity Corp. Ltd. of Sydney, also has agreed as part of the settlement to put three U.S. residents on its five-member board.

The state's unprecedented seizure last month of profitable Universal Savings Bank in Orange was triggered in part by a series of hand-written notes outlining real estate deals that could have diverted $10 million or more to the S&L's ailing parent company in Australia, according to testimony and evidence introduced in Superior Court Tuesday. And while state regulators said they acted on the belief that the S&L had committed itself to transferring funds improperly to Sydney-based Unity Corp. Ltd.

Universal Savings Bank in Orange, the Australian-owned institution that was seized briefly by state regulators last year, said Friday that the Federal Home Loan Bank Board has lifted restrictions on the thrift's operations. In addition, Universal has selected U.S. businessman Lawrence Grill to replace Chairman Christopher Blaxland, an Australian who won a court battle against the state regulators last year. Blaxland said he remains an executive director of Unity Corp. Ltd.